MNI BRIEF: Bank Of Italy Downgrades 2024 Inflation Forecast

CANADA MAR JOBLESS RATE 6.1% VS FORECAST 5.9%, PRIOR 5.8%

MNI: Canada Wages Up 5% Even With Highest Jobless Rate In 2Yrs

MNI BRIEF: Monetary, Fiscal Policy Need Harmony - Campos Neto

CORRECTED-MNI: Changing Brazil Fiscal Target Not "Plan A"

MNI BRIEF: PBOC To Curb Any Overshooting Of The Yuan-MPC

MNI: US FEB CONSUMER CREDIT +$14.1B

MNI: BAKER HUGHES US RIG COUNT 620; OIL RIGS 508; GAS RIGS 110

EZ/UK Bond Supply Calendar: EU-Bond Auction, BoE Short APF Mon

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Post-LIBOR Settle Update: 3M Recedes, Whites Rebound

US EURODLR FUTURES

Lead quarterly EDM2 holding at 98.175 (+0.010) after latest 3M LIBOR set'
scales back -0.01057 from Wed's new 2Y high of 1.42186% to 1.41129% (+0.00943/wk).

  • Balance of Whites (EDU2-EDH3) rebounds from Wed's sell-off, currently trades +0.005-0.040 higher, Reds through Golds (EDM3-EDH7) gaining +0.055-095, Greens outperforming.
  • Inversion in front Reds (mkt measure of confidence in Fed managing a soft landing/avoiding recession) expands: Red Sep (EDU3) currently trading 96.765 vs. Red Jun (EDM3) at 96.675. Levels start to flatten out (dis-invert) around Blue Sep'25-Dec'25 trading 97.13.
  • Wednesday's FI option trade recap: Tsys futures rebounding as bonds appear to be discounting the inflation data, short end anchored as additional three 50bp rate hikes gets baked in. Nevertheless, analysts anticipate inflation softening in the coming months.
  • Yield curves bear - then bull-flattened on the day amid surge in rate hike hedging via various outright put buying and spread trade.
  • Salient Eurodollar option trade includes buy of +5,000 Dec 96.00/96.25/96.50 put flys, 2.25, block buy of 6,000 Green Sep 96.25/96.62 3x2 put spds, 7 net, and block buy of +10,000 short Dec 98.50 puts, 12.5 vs. 96.66/0.16%. Large vol buy +10,000 Jun 98.12 straddles, 11.0 vs. 98.155/0.18% blocked.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.